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CERTIFIED AND INDEPENDENT BUSINESS VALUATION EXPERTS

Based on the experience of preparing over hundred valuations of businesses in various industries and countries, Capitalia offers professional, independent and quick company valuation service.

USE OF EVALUATION

Business valuation is an important step in the company sales process. A business valuation report helps owners to better understand the value of the company, as well as valuation constituents and dependents before the actual sale. Also business valuation is often used by clients that seek to acquire another company. Our valuation specialists hold local and international business valuation certifications. As a result, valuations conducted by Capitalia can be used for submission to state authorities, for example, in instances of re-valuation the registered capital.
Understanding of the value of the company is also relevant in situations of changes in the ownership of the business. Such could be situations when one of the existing owners wants to purchase additional shares from other shareholders and both parties want indepentent view on the fair value of such transaction. Business valuation can be also useful in the process of attracting venture capital investment so that to better understand the negotiation position with the potential investor.
By being active players in the business financing and financial advisory markets, we have collected substantial understanding on how investors approach corporate valuations in acquisition processes. In total, we have evaluated more than hundred companies in wide-ranging industries, and among our clients have been both small companies with around 10 employees to the leading commercial banks and manufacturing businesses.

VALUATION SERVICES

COMPANY VALUATION REPORT

Capitalia develops a detailed company valuation report, by employing at least two different valuation methods. Based on the historical data and our analysis, we make forecasts about the operations of the company for up to 5 years in the future. Valuation report contains detailed description of the applied methodology as well as assumptions, description of operations, financial analysis and forecasts. Valuation report is prepared in 10 working days since reception of the necessary information from the client.

EXPRESS VALUATION

Express valuation is very useful when it is necessary to estimate the value of the company quickly. Capitalia determines the business value by employing the multiples valuation method. We analyze the historical financial data of the company and gather information about how similar companies are traded on public stock exchanges. Express valuation report contains brief description on the company, economic analysis, financial analysis and description of applied methodology. However, express valuation may not be applicable in all situations, for example, to companies that are young or are working in a niche industry, where no comparable peer companies can be found on stock exchange. Express valuation report is prepared in 3 working days.

VALUATION METHODS

Before preparing valuation report, Capitalia determines the most suitable valuation methods for the business and situation at hand. Capitalia typically employs three principal valuation methods:

INCOME-BASED VALUATION METHOD

To develop a financial forecast model, Capitalia analyses historical financial data, as well as evaluates trends in the global and local economies as well as in market conditions in the particular industry. Revenue, cost, as well as capital investment forecast allows us to estimate the cash flow from operations in the future years. To determine the present value of these future cash flows we calculate the weighted average cost of capital of the business. The future cash flows are discounted with the cost of capital rate, and sum of those cash flows indicate the present value of the company. Even though preparation of the financial forecasts is a fairly complicated process that relies on many assumptions, the income-based valuation method is considered to be the most precise and individualized of all the valuation methodologies.

MARKET-BASED VALUATION METHOD

To estimate company’s value with the market-based valuation method, Capitalia analyses the market pricing of similar companies in the same industry. We gather the data about similar companies from the stock markets and use the obtained market multiples (Value to sales, Value to ebitda and Value to net earnings) to calculate the company’s value based on its historic financial results. Since it is very difficult to find companies with the same exact operating characteristics, we often adjust the market multiples to take into account further risks and particulars of each valuation case.

ASSET-BASED VALUATION METHOD

Capitalia estimates value of the company by subtracting the liabilities (bank loans, debt to suppliers, etc.) from the market value of company’s assets (including fixed assets, debtors and inventories). This method is less complicated, since it requires fewer assumptions and does not need any future forecasts. However, as it does not take into account intangible assets (e.g. brand, procedures, client loyalty), it is most often used when valuating companies that are close to insolvency and in cases when it is more beneficial to simply sell the assets of the company and discontinue operations.

PRICES

The following prices are applied for business valuation services:
Business valuation report from EUR 1500
Express valuation EUR 500
Prices don't include VAT

Apply for this service

To apply for the service, please fill in the form below or contact our specialists:
+371 2880 0880